I searched couple other forums for this problem and found the suggestion to 
switch from graphical mode to text mode booting. And that involved using 
grub-ubdate command. 
This what i got in terminal after executing :~$ sudo grub-update
[sudo] password for joe:
Searching for GRUB installation directory ... found: /boot/grub
Searching for default file ... found: /boot/grub/default
Testing for an existing GRUB menu.lst file ... found: /boot/grub/menu.lst
Searching for splash image ... none found, skipping ...
Found kernel: /boot/vmlinuz-2.6.22-14-generic
Found kernel: /boot/memtest86+.bin
Updating /boot/grub/menu.lst ... done

Does our bug have to do anything with line:
Searching for splash image ... none found, skipping ...  ?

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[Gutsy] Blank screen while booting
https://bugs.launchpad.net/bugs/147733
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